Longer dated JGB yields edged lower on.........>

JGBS: Longer dated JGB yields edged lower on Monday as shorter dated paper

operated in a marginally mixed manner, although any notable upside pressure in

prices was capped by a weaker JPY & stronger equity backdrop (on the back of the

US/China trade developments). This saw JGB futures ease in afternoon dealing. 

- The 10-Year JSCC/LCH spread tightened by 0.1bp to 5.4bp, after the widening

trend experienced last week.

- Focus today will fall on 20-Year JGB supply and BoJ Gov Kuroda's & Dep Gov.

Wakatabe's appearances in parliament. 

- Barclays suggest that "today could see sellers initially take a slight upper

hand around the super-long end ahead of the 20-Year auction. Although we expect

the auction to clear without a hitch assuming yields near current levels. Given

the current uptrend in overseas yields, many investors may be taking a cautious

stance on foreign bond investment, so the rise in yields from the average at the

last auction should spur a certain level of buying from a wide range of

investors attracted to the sector's stability linked to the BoJ's yield curve

controls."